Create a profit plan for 2012

11/17/2011 @ 2:05pm

This seasonal price chart for corn shows the 10-year average price for each month. It is important in marketing to know that prices tend to rise into early summer.

Risk scenario planning is a management and planning process that is used by the government, businesses, and the military. The scenario planning process I find useful is from the book, The Art of the Long View, by Peter Schwartz.

Here's how to use Schwartz' seven-step process to make corn marketing decisions and to create a 2012 corn profit plan.

Step 1. State the focal issue or decisions facing your farm.

Write out the important decisions that need to be made and the timetable you need to make these decisions. It may involve which mix of crops/varieties you should plan for next year, which farms you should plant to what crops, and when you should sell.

Step 2. To identify the main factors that influence the decision, answer these questions.

● Which key factors will determine the success or failure of the decisions?

● What do you need to know to make this decision?

● When do you need to finalize your decision?

● What conditions would cause you to change your decision?

● What information should you consider before finalizing your decision?

Step 3. To identify the driving forces that influence these key factors, answer these questions.

● What are the costs and availability of land, capitol, and inputs?

● What fits best with your crop rotation?

● Do you have the equipment and other resources you would need to farm more land or to grow more acres of corn?